Mayor warns of millions in unpaid utility bills, outlines audit and staffing plan

The mayor told the council on March 2 that the city is carrying millions in unpaid utility accounts and urged a firmer enforcement posture to preserve critical revenue.

“At the end of last week, we have in uncollected utilities $6,500,000 out,” the mayor said, adding that after removing deleted accounts the city still shows roughly $3,900,000 in delinquent receivables. He warned that the city averages 576 utility cutoffs a month and that staff had been delaying shutoffs up to 60 days in recent practice.

The mayor said he had asked staff to compile contracts and ordinances that give the city authority to cut service when accounts are 30 days past due and that he will not waive the $75 reconnect fee or extend grace periods except in “truly extraordinary” circumstances. He described one recent case that prompted him to authorize a reconnection, then said the incident led him to re-examine enforcement rules.

As part of a broader recovery plan, the mayor and staff reported recent meetings with CPA and audit firms and a plan to bring the city’s audits current. He said the city has a schedule to deliver fiscal-year audits and aims to be bond-eligible again by mid‑2027, noting potential savings from bringing two accountants in-house to reduce external audit hours. “We have a plan in place to be up to date with audits… and we will deliver the fiscal‑year audit by June ’27,” he said.

Council members asked whether hardship cases would be accommodated; the mayor said staff will continue to work with customers on verified hardship but will be stricter where patterns of repeated nonpayment exist. He raised the possibility of raising deposits to match average rents and asked councilors to ensure constituents understand the new enforcement posture.

The mayor also noted a year‑to‑year general‑fund shortfall cited in staff materials and said he will return with options for refinancing and other steps to restore fiscal stability. He said staff would present recommended ordinance or deposit changes to the council if needed.

The council took no formal action on enforcement policy during the meeting but heard the staff plan and audit timeline and discussed next steps for budgeting and collections.